- Egyptian company includes international origination and merchandising, stevedoring and storage operations, and inland logistics capabilities
- Important enhancement of destination marketing capabilities
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced today that it has
reached an agreement to purchase a 50 percent stake in Cairo-based
Medsofts Group. The new 50-50 joint venture will own and manage
merchandising and supply chain operations, including:
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An international merchandising operation that handles more than 1.5
million metric tons of grains, oilseeds and soft commodities annually
destined for the Middle East and North Africa;
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A local grain distribution operation, serving customers in Egypt; and
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An inland logistics network that links port operations to customers
throughout Egypt.
In addition, the joint venture will own a 50 percent share of Nile
Stevedoring & Storage Co. (NSSC), which operates one of the largest
grain port facilities in Egypt. Located at the Port of Alexandria, the
facility has an annual discharge capacity of more than 2 million metric
tons, and includes additional land for future expansion; the joint
venture parties are conducting advanced due diligence on a potential
oilseed crush facility on that land.
“This is an excellent addition that helps meet several key goals for
strategic expansion in our Agricultural Services business: it further
diversifies and expands our merchandising footprint, it helps us grow
our logistics services, and it is another important enhancement of our
destination marketing capabilities, which are getting us closer to our
customers as we deliver products directly to them,” said Joe Taets,
president of ADM’s Agricultural Services business unit, and president of
the company’s EMEA operations.
“We are continuing to invest in our global supply chain as we execute
our plan for profitable growth,” Taets added. “This year alone, in order
to continue diversifying our footprint and enhancing our ability to
connect supply and demand around the globe, ADM has opened new
distribution and merchandising offices in Central America, Asia and
Africa; acquired a port and shipping agency in Brazil; announced major
expansions at port facilities in Argentina and Brazil; launched ARTCO
Stevedoring; and acquired full ownership of strategically-located
terminals on the Black Sea. These investments are expanding our reach
and capabilities, and delivering value to our customers and our
shareholders alike.”
Medsofts is privately held. The transaction is subject to regulatory
approval. ADM is targeting closing the deal in early 2016.
Forward-Looking Statements
Some of the above statements constitute forward-looking statements.
ADM’s filings with the SEC provide detailed information on such
statements and risks, and should be consulted along with this release.
To the extent permitted under applicable law, ADM assumes no obligation
to update any forward-looking statements.
About ADM
For more than a century, the people of Archer Daniels Midland Company
(NYSE: ADM) have transformed crops into products that serve the vital
needs of a growing world. Today, we’re one of the world’s largest
agricultural processors and food ingredient providers, with more than
33,000 employees serving customers in more than 140 countries. With a
global value chain that includes more than 460 crop procurement
locations, 300 ingredient manufacturing facilities, 40 innovation
centers and the world’s premier crop transportation network, we connect
the harvest to the home, making products for food, animal feed,
industrial and energy uses. Learn more at www.adm.com.
Archer Daniels Midland Company
Media Relations
Jackie Anderson
media@adm.com
312-634-8484